A lot of problems persisting in the markets. In the S&P, we saw price actually break below the descending channel, which is very problematic, particularly once it breaks below 1294.

At this point, there is a real chance in the coming weeks/months that we could see a break below the 200-day moving average which currently resides at 1248.

We have declined five straight weeks - the first time that this has happened since the March '09 recovery lows. We are definitely overdue for a bounce, and the possibility of seeing a sixth straight week of declines becomes less likely (which we haven't seen since July '08).

The S&P continues to hold onto the 1300 price level, despite trading below that level on Friday. These are important psychological support levels for market participants.

My conclusion: Market bounce seems likely at this point, based on the extent and duration of the declines that we have seen over the last five weeks. The bounce could be a descent 2-3% opportunity to take advantage of.